Why Are Textbooks So Pricey?!

Last evening, I purchased textbooks for the upcoming Fall semester of my graduate program.  I was again struck by how much textbooks cost!  This year, college students will spend on average from $700 to $1,100 for books; that's triple the average in 1986. The market for new books is estimated at $3.6 billion this year, according to a 2005 report by the Government Accountability Office.  While the price of textbooks is no comparison to the astronomical tuition rates at many schools, books are often not covered by financial aid packages, so students must find ways to purchase textbooks on their own dime.  In response, several states, including Virginia and Maryland, have attempted to curb the rising costs of books by crafting legislation that limits the powers of publishing houses and distributors.   Now, the federal government is initiating sweeping legislation.

In 2008, Congress passed a law that forces publishers to release more information about their pricing structure.  Publishers often package textbooks with CDs and workbooks to charge more to students who often do not need those accessories.  The law, which goes into effect this year, requires that textbooks be sold separately from accessories.  "The principal goal of the legislation, which we are totally supportive of, is transparency," states Bruce Hildebrand, executive director of higher education for the Association of American Publishers.  Let's hope that transparency translates to dollars saved for college students.

So what caused textbook prices to rise so dramatically in the first place?  Economists show that as the mass-market and trade markets expanded, the sell of new textbooks decreased and publishers begin to lose money.  In other words, students begin buying cheaper, used books and trading books among one another.  Publishers increased the prices of new books to keep profit margins steady.  Here's an example: on Amazon.com (a huge reseller of textbooks), a student can purchase Principles of Algebraic Geometry for $95.00 new or for "like new" from $77.95.  That's a $17 difference - enough savings to buy another, less expensive book.  Oh, by the way, Ebay has the same book for $42.96!

While the new federal legislation is an important step, publishers are creative.  They will find ways to keep textbook prices above-average.  Here's what the educated student can do to keep the wallet in check:

• Shop around! Check the college bookstore, Amazon.com, and Ebay before purchasing a book. You don't need a new book, you just need one you can read.


• Ask your classmates. Find a student who has already taken the class. Ask to borrow the book or to buy it from your peer at a reduced rate.


• Find out if you really need the book. Ask the professor or a previous student. Often, professors recommend or "require" textbooks that they never use.